CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 2 - MCQExams.com

The amount received from the insurance company on joint life policy of partners in excess of its surrender value should be credited to partners ________________.
  • Equally
  • In the profit sharing ratio
  • In the ratio of capitals
  • None of the above
When capitals are fixed, the loss arising out of insolvency of a partner will be borne by other solvent partners in the ____________________.
  • Ratio of their fixed capital
  • Ratio of fixed capital plus current accounts
  • Profit sharing ratio
  • Ratio of their capital after making necessary adjustments
Which of the following is correct statement ?
  • A firm may not acquire a joint life policy on the life of the partners
  • Retirement of a partner results in reconstitution of the firm
  • For past profit or reserves, the amount is not credited to all the partners in the old profit sharing ratio
  • The amount of general reserve is transferred to partners capital accounts in capital ratio
Profit on revaluation of assets and liabilities at the time of retirement of a partner will be credited to __________________.
  • Remaining partners in the profit sharing ratio
  • All the partners in their old ratio
  • Remaining partners in their gaining ratio
  • Capital Ratio
A and B shared profits in the ratio of 7 :C was admitted as a partner. A surrendered 1 /7th of his share and B 1/3rd of his share in favour of C. The ratio of A, B and C will be ___________.
  • 6 : 2 : 1
  • 6 : 2 : 2
  • 12:2:2
  • 14:6: 13
The loss of a firm when all the partners are insolvent is to be borne by ______________.
  • Creditors
  • Government
  • Partners
  • Debtors
K and L sharing profits in the ratio of 7 : 3 admit M on 3/7 share in the new firm which he takes 2/7 from K and 1/7 from L. The new ratio of K , L and M will be ____________.
  • 7:3:3
  • 4 : 2 : 3
  • 14 : 6 : 15
  • 29 : 11 : 30
In the absence of an agreement to the contrary,  ___________________.
  • An active partner is entitled for salary and a sleeping partner for interest on capital @ 6% p.a.
  • An active partner is entitled for salary and each partner for interest on capital @ 6% p.a.
  • All partners are entitled for salary and interest on capital @ 6%
  • No partner is entitled for salary or interest on capital
Which of the following transactions is of capital nature?
  • Purchase of a truck by a company
  • Replacement of old types and tubes
  • Yearly premium to insure the truck
  • Cost of repair of the truck
A, B and C are partners in a firm. Though there is no provision in the partnership deed for interest on capital, this has been provided in the account @ 10% p.a. for the two years ended on 31 Dec.,Their fixed capitals on which interest was calculated were throughout A Rs. 15,000, B Rs. 12,000 and C Rs. 9,Their profit sharing ratios were 2007 - 5:3:2 and 2008 - 2: 2:The necessary adjustment entry will be made as:
  • C's current a/c Dr. 360

    To A's current a/c 240

    To B's current a/c 120
  • A's current a/c Dr. 240

    B's current a/c Dr. 120

    To C's current a/c 360
  • A's current a/c Dr. 120

    B's current a/c Dr. 240

    To C's current a/c 360
  • C's current a/c Dr. 360

    To A's current a/c  120

    To B's current a/c 240
Which of the following are of revenue nature ?
  • Cost of extension of factory building
  • Cost of painting the old building
  • Legal cost of acquiring land for extension
  • Purchase of freehold land
In case of insolvency of a partner, any balance in reserve fund or profit and loss accounts is distributed to all the partners ______________.
  • Equally
  • In the profit sharing ratio
  • In the ratio of capitals
  • In sacrificing ratio
Which of the following statement/s is/are appropriate in respect of partnership account?
In the absence on any provision in the partnership agreement to the contrary, partners can charge interest @6% per annum on loans given by them to the partnership firm.
2.  An ordinary partnership firm can have not more than 20 partners
A banking partnership firm can have not more than 10 partners.
In the absence of any provision in the partnership agreement to the contrary, profits and losses are shared by the partners in the ratio of their capitals.
Select the correct answer from the codes given below:
  • 1, 2 and 3
  • 1 and 3
  • 2, 3 and 4
  • 1, 3 and 4
Advance received in connection with the contract to supply goods which was later on forfeited for breach of contract, it is an example of  ______________.
  • Revenue receipt
  • Capital receipt
  • Deferred revenue receipt
  • None of the above
In case of an unregistered firm a partner cannot:
  • Get a share in profit
  • Get interest on his capital
  • File a suit against another partner
  • Get interest on loan
Entrance Fee/Admission Fee may be treated as ____________.
  • Revenue receipt
  • Capital receipt
  • Both (A) and (B)
  • None of the above
The interest on partners capital accounts is to be credited to _______________.
  • Interest Account
  • Profit and Loss Account
  • Drawing Account
  • Partner's Capital Account
 Amount realization from the sale of private estate of partners is used first to pay off ___________________.
  • Debts of the firm
  • Private debts of the partner
  • Wife's loan
  • Bank loan of the firm
Consider the following statements :
It is compulsory to have a Partnership Deed.
It is compulsory for a partnership firm to get itself registered.
A partner of an unregister firm can file a suit for the dissolution of the firm.
Which of the above statement/s is/are not correct ?
  • 1, 2 and 3
  • 2 and 3
  • Only 1
  • 1 and 3
Which of the following is correct statement ?
  • Partner's current accounts are opened in case their capital accounts are fixed
  • In the absence of partnership deed, partner's shall be paid salaries
  • The interest on partner's drawings is to be debited to profit and loss account
  • Where a partner is entitled to interest on capital contributed by him, such interest will be payable only out of capital
According to the Companies Act, 2013 the paid up capital of a 'Small Company' does not exceed _____________. 
  • Rs 100 crore
  • Rs 100 lakh
  • Rs 50 crore
  • Rs 50 lakh
According to the Companies Act, 2013 'Cash flow statement' is not included in Financial Statements for _________________.
  • One Person Company
  • Dormant Company
  • Small Company
  • All of the above
According to the provisions of the New Company Act, 2013, the 'Corporate Identity Number'(CIN) shall be included in ____________________.
  • The Register of Registered Companies
  • The Certificate of Incorporation
  • The documents of MCA
  • All of the above
To understand partnership accounts properly, how many methods can be used for transactions and events?
  • Only one method
  • Two methods
  • Three methods
  • Four methods
Which one of the following is correct ?
  • The authority of a partner to bind the third is called his implied authority
  • Implied authority can be restricted or extended by mutual agreement
  • For wrongful acts of a partner, the firm is not liable to the same extent as the partners
  • None of the above
Which of the following is not correct ?
  • In case of Fluctuating Capital System, there is only one Capital Account for each partner.
  • In the absence of partnership deed, every partner is entitled to share profit or loss equally.
  • A joint venture is known as partnership under the Partnership Act, 1932.
  • Partnership deed is an oral or a written agreement.
Consider the following statements :
1.Every partner cannot take part in the conduct of the business.
2.Every partner has a right to have access to and inspect and copy only the accounts books of the firm.
3.A minor partner is personally liable to the third party.
Which of the above statement/s is/are not true ?
  • 2 and 3
  • Only 3
  • Only 1
  • 1, 2 and 3
A limited liability partnership is a body corporate with legal personality.
  • Yes
  • No
  • Cant say
  • None of the above
Partnership is the relation between _________________________.
  • Person who have agreed to share the profit of a business carried on by all or any of them acting for all
  • Partner or customer
  • Partners
  • Customers
The Indian Partnership Act came into force on ________________.
  • 1st October, 1932
  • 1st July, 1930
  • 1st June, 1936
  • 1st June, 1940
The maximum number of persons in a partnership firm carrying on the banking business, should not exceed _____.
  • 5
  • 7
  • 10
  • 11
The minimum number of persons required to form a partnership is ______.
  • Two
  • Five
  • Seven
  • Eleven
The maximum number of persons in a firm carrying on any business, other than banking business, should not exceed ____.
  • 5
  • 7
  • 10
  • 20
According to the Companies Act, 2013 the number of members of 'Private Companies' increased ________________.
  • From 5 to 150
  • From 50 to 200
  • From 7 to 50
  • From 7 to 100
Section 69 of the Act,is related to _________________.
  • Name and nature of the firm
  • Place
  • Capital of firm
  • The effect of non-registration of firm
The New Companies Act, 2013 has ___________________.
  • 29 chapters and 4 Schedules
  • 98 chapters and 20 Schedules
  • 29 chapters and 7 Schedules
  • 70 chapters and 10 Schedules
Which is/are elements of the Partnership ?
  • Contract
  • Association of two or more persons
  • Carrying on of business
  • All of the above
Which Act of Companies incorporated the 'Principle of Limited Liability'?
  • The Companies Act, 1850
  • The Companies Act, 1857
  • The Companies Act, 1936
  • The Companies Act, 1956
Give journal entry through Profit and Loss Adjustment Account of Interest on capital________.
  • A capital A/c Dr.

    B capital A/c Dr.

    To Profit and Loss Adjustment A/c
  • Profit and Loss Adjustment A/c Dr.

    To A's capital A/c

    To Bs capital A/c
  • Interest A/c Dr.

    To Profit and Loss Adjustment A/c
  • All of the above
 Statement to ascertain the net effect of omission on partners capital accounts will be be prepared _______________________________.
  • Adjustment are given through Profit and Loss Adjustment Account
  • Adjustment are given directly in Partners Capital Accounts
  • Adjustment are given through Trading Accounts
  • None of the above
Which of the following is not an essential feature of a partnership firm?
  • Association of two or more persons
  • Compulsory registration
  • Mutual agency
  • Existence of business
Which is not a subject matter of the Partnership Act, 1932 ?
  • Partnership
  • Hindu Undivided family
  • Co-ownership
  • B,C and D
Person who have entered into partnership with one another are called individually ____________.
  • Partners
  • Customers
  • Managers
  • Firm
Necessary past adjustments can be made through:
  • Profit and Loss adjustment Account
  • Directly in the capital accounts
  • Trading adjustment account
  • Cash flow adjustment account
Partnership is based on ______________.
  • Mutual contract
  • Parliamentary process
  • Company law
  • Corporate law
Which of the following statement is correct?
  • There are two types convertibility in currency (i) Current Account (ii) Capital Account
  • All the foreign currency transactions except those for creating and liquidating foreign assets/liabilities are free from any type of restriction is convertibility on current account.
  • Al the foreign currency transactions are free from any types of restrictions is convertibility on capital account
  • All of the above
 Past adjustments are needed when _____________________.
  • There is omission of transaction
  • There is error in transaction recorded
  • There is omission of interest on drawings
  • All of the above
Registration of a partnership firm can be affected _______.
  • Just after commencement of business
  • As soon as partnership deed is ready
  • Any time during continuation of the business
  • Within six months of entering into an agreement
The members of a partnership firm are individually called _______.
  • Firm
  • Partners
  • Directors
  • Friends
The transferee of a share of a partner's interest in a firm is called ____________.
  • Senior partner
  • Active partner
  • Sub partner
  • Dormant partner
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Accountancy Quiz Questions and Answers